TORONTO (miningweekly.com) – Teck Resources' Andocollo copper/gold hypogene project, in Chile, may be delayed because of challenges to previously-granted water supply permits, the firm cautioned this week.

Teck is talking to national and regional authorities, and is proceeding with plans for alternative water supply.

However, there is a possibility that the hypogene project will miss its current target of putting the first ore through the mill in November this year.

“The length of any delay will depend on the outcome of discussions with authorities and the nature of required changes to Andacollo's water system, if any,” Teck said in a statement.

Meanwhile, the sale of a gold royalty interest in the Andacollo project to Royal Gold, announced in April, is not expected to close until the permitting issues have been sorted out.

Andacollo and Royal Gold have agreed to extend the outside date for the closing of the transaction to January 29, 2010.

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